realestate

Batton lawsuit aims for class action, claims billions in damages

Millions of homebuyers could pursue tens of billions in relief if court grants class cert., mirroring Sitzer/Burnett.

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illions of homebuyers could recover billions if a court grants class certification in a lawsuit that echoes the Sitzer/Burnett precedent. The suit, filed by buyers against the National Association of Realtors (NAR) and major franchisors—Anywhere, Keller Williams, and RE/MAX—seeks to represent the estimated millions who allegedly paid too much because of NAR’s commission rules. Titled “Batton,” the case claims a “decades‑long, nationwide antitrust conspiracy” that inflated buyer‑broker commissions, causing buyers to overpay by billions.

    The proposed class would include purchasers in 23 states and Washington, D.C. To qualify, a buyer must have paid a broker commission when buying a property listed on any of 39 MLSs, from January 25 2015 to December 31 2021. The exact window varies by state law. Attorneys estimate the class could number in the millions.

    Dr. Rosa M. Abrantes‑Metz, an expert witness, examined transactions in four sample MLSs—Triad (NC), Stellar (FL), Southwest (NM), and South‑Central Kansas (KS)—and compared U.S. buyer‑agent commissions to foreign averages. She found overseas rates averaged 1.38 % versus the U.S. “typical” 3 %. Her analysis assigns each buyer in the class $8,524 in damages for inflated commissions and home prices. For the four MLSs alone, this totals $3.6 billion; extrapolated to all subject MLSs, the figure could reach tens of billions.

    A current appeal question is whether buyers who also sold homes—whose seller claims were covered by other settlements—can remain in the buyer class. In prior Sitzer/Burnett and Gibson cases, a judge ruled such buyers were ineligible. Abrantes‑Metz estimates 24‑28 % of potential class members did not sell during the period, yet even a 75 % reduction would leave a sizable group.

    The core rule at issue is NAR’s now‑defunct Participation Rule, which required listing brokers to offer a uniform compensation package to all buyer brokers. The rule allegedly forced sellers to provide identical terms regardless of the buyer agent’s experience, services, or negotiated arrangements. Dr. Norman Miller, another expert, noted U.S. commission rates displayed extreme rigidity, staying high despite inflation, technological advances, and varying agent effort. He also alleged that NAR’s rules incentivized agents to steer buyers toward homes with higher commission rates, and that the threat of steering alone encouraged higher commissions.

    NAR’s spokesperson stated the association promotes a competitive, fair, and transparent market, empowering buyers and sellers to negotiate compensation and benefit from professional representation. The spokesperson added that NAR would continue to advocate its position as the case proceeds. Real Estate News has requested comments from Anywhere, Keller Williams, and RE/MAX and will update the story when responses arrive.

Batton lawsuit seeks class action, demands billions in damages.